New car sales in Europe declined by 2.1% in January, as rising demand for fully electric and hybrid-electric vehicles failed to offset weaker petrol and diesel sales, industry data showed on Tuesday.
According to the European Automobile Manufacturers Association (ACEA), overall car registrations fell across key markets including France, Italy, Germany, and Britain, with Spain being the only major European market to post year-on-year growth. The decline brought total sales in the European Union, Britain, and the European Free Trade Association (EFTA) to just under 1 million vehicles—the lowest volume since August.
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The drop comes as the EU executive prepares to present its automotive sector strategy on March 5, following discussions with automakers, unions, and industry stakeholders. European carmakers, facing intensifying competition from Chinese brands and potential U.S. tariffs, are urging the European Commission to provide relief from fines related to new CO2 emission targets introduced in January. Some automakers have raised prices on petrol-engine models to accelerate electric vehicle (EV) adoption, though there are concerns that this may lead to an overall decline in car purchases.
ACEA data showed that registrations of battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) surged by 34% and 18.4%, respectively, in January, while plug-in hybrid (PHEV) sales dropped by 8.5%. Electrified vehicles—including BEVs, HEVs, and PHEVs—accounted for 57.2% of all EU passenger car registrations, up from 47.4% a year earlier.
By market, Spain saw a 5.3% increase in sales, while France, Italy, and Germany recorded declines of 6.2%, 5.8%, and 2.8%, respectively. In Britain, sales were down 2.5%. Among major automakers, Volkswagen and Renault posted sales growth of 5.3% and 5.4%, respectively, while Stellantis saw a sharp 16% decline.
Beyond Europe, automakers are bracing for potential trade measures from the U.S. administration under Donald Trump. The former president has imposed tariffs on aluminum and steel and has threatened a 25% tariff on auto imports from Mexico and Canada, as well as on all foreign vehicles and semiconductors.
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Source: Reuters